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Benefits from a Baseball Franchise: An Alternative Methodology

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  • John P. Blair

    (Wright State University)

Abstract

Rosentraub and Swindell presented a fiscal impact study of a minor league franchise in Fort Wayne, Indiana. They concluded that it would not be advisable for the city to provide a substantial subsidy to the franchise because the extra tax revenues generated by the team would be insufficient to justify the subsidy. Their conclusions rest on faulty methodology. The largest benefit from the franchise is the additional income that Fort Wayne residents would receive due to extra spending. These important benefits were treated as negligible in the Rosentraub and Swindell study. A benefit-cost approach provided a framework for a more complete accounting of the benefits to Fort Wayne residents. When all the benefits to local residents are considered, a larger subsidy could have been justified Had a larger subsidy induced the team to locate in Fort Wayne, citizen welfare could have been enhanced.

Suggested Citation

  • John P. Blair, 1992. "Benefits from a Baseball Franchise: An Alternative Methodology," Economic Development Quarterly, , vol. 6(1), pages 91-95, February.
    • Handle: RePEc:sae:ecdequ:v:6:y:1992:i:1:p:91-95
    DOI: 10.1177/089124249200600108
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    Cited by:

    1. Michael B. Teitz, 1997. "American Planning in the 1990s: Part II, The Dilemma of the Cities," Urban Studies, Urban Studies Journal Limited, vol. 34(5-6), pages 775-795, May.
    2. Ronald William McQuaid & Malcolm S Greig, 2003. "The Economic Impact of a Sporting Event: A Regional Approach," ERSA conference papers ersa03p170, European Regional Science Association.
    3. Calvin Jones & Max Munday & Neil Roche, 2010. "Can regional sports stadia ever be economically significant?," Regional Science Policy & Practice, Wiley Blackwell, vol. 2(1), pages 63-77, June.

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